The FAIR token is an ‘ownership coin’, and is used in the futarchy governance model. It means that owning the token = owning the IP, treasury.

The token’s distribution was determined with our values in mind, aiming for incentive alignment and a Fair valuation:

50% of the total supply will be sold during the ICO
20% is reserved as the team’s incentive package, released on market cap milestones, measured by 30-day TWAP. The team’s starting allocation is 0%, with first tranche of 2.5% of the total supply being unlocked at $10m market cap. The last tranche is unlocked at $320m market cap.
12% of the total supply will be locked as protocol owned AMM liquidity
15% of the total supply is assigned to futarchy governed treasury
2% will be rewarded to $STAR stakers following 30 day linear vesting
1% will be distributed to ICO participants based on their FairScore

A great showcase of the Futarchy Governance dynamic is the handling of the 5% token Treasury. It isn’t controlled by the team or a multisig. It’s governed by token holders through decision markets. Want to fund a partnership? Propose it. The market decides if it’s likely to create value.

The governance is facilitated by Combinator. Initially the proposals can be put forward by the team, or token holders of 3% or more of total supply, who held it for more than 30 days (measured by TWAP). This measure ensures long term outlook in decision making and incentive alignment.

FairScale

FairScale

FairScale

FairScale

What does the token do?